IMF Head Gives 'Stark Message' of Looming Inequality-Fueled Global Financial Disaster
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“In the 2020s,” said Georgieva “the financial sector will have to grapple with preventing the traditional type of crisis, and handle newer ones, including climate-related shocks. Think of how stranded assets can trigger unexpected loss. Some estimates suggest the potential costs of devaluing these assets range from $4 trillion to $20 trillion.”
She also pointed to new IMF research showing rising inequality—which her institution has helped fuel by promoting neoliberal policies—is a predictor of coming a financial crisis. Staving off that threat includes increasing affordable and readily available access to financial services to address inequality, sustaining regulatory mechanisms, and ensuring more stability. Key to the latter point is addressing the climate crisis.
“The financial sector can play a crucial role in moving the world to net zero carbon emissions and reach the targets of the Paris Agreement,” said Georgieva. “To get there, firms will need to better price climate change impacts in their loans.” Institutions will also increase stability and help lessen inequality by boosting lending to smaller firms, she added.
“The IMF delivered a stark message about the potential for another massive financial disaster that we last experienced during the Great Depression,” said LeCompte, also a United Nations finance expert. “With inequality on the rise and concerns of stability in the markets, we need to take this warning seriously.”
Jesus: Hey, Dad? God: Yes, Son? Jesus: Western civilization followed me home. Can I keep it? God: Certainly not! And put it down this minute--you don't know where it's been! Tom Robbins in Another Roadside Attraction
January 18, 2020 at 3:36 AM #252412ThouArtThatParticipant
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Yep – stating the obvious – a little too late. Has anyone listened to the IMF in the past? Will anyone listen now? All indications are those at the helm will continue our present course until the ship sinks. Such is our collective fate.
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January 18, 2020 at 7:42 AM #252470algernonParticipant
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One place you can’t go for answers is the IMF. The one and only purpose of the IMF is to stabilize the international capitalist system.
That’s way too narrow a purview. In the world today are other, and larger and qualitatively more important concerns, such as basic human rights to an affordable single payer health care plan, and to clean water and clean air. Simple things, but things that the IMF isn’t positioned to understand. The IMF only fit to understand the exchange of $.
January 18, 2020 at 12:42 PM #252486mmonkParticipant
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So says the international organization that helped create it.
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January 18, 2020 at 1:19 PM #252493djean111Participant
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Let me know when the IMF takes some blame for that. They are suggesting that even more debt will fix things. Climate change and inequality are now and in the future affecting their profits, that’s all.
January 18, 2020 at 2:04 PM #252507Ohio BarbarianModerator
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Fuck the IMF. Millions of South Americans agree.
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